Paypal CEO Dan Schulman gave details about PayPal's crypto ambitions, which it plans to become a super app and provide information on whether the company will ship Bitcoin in the near future.
In an exclusive interview with Decrypt, Schulman explains how PayPal is racing to adopt the next era of financial technology.
This includes launching a business unit dedicated to cryptocurrency, which was first announced last month.
"There are many opportunities for us to help create the next generation of infrastructure," said Schulman.
He added that part of its mission is to advance the use of digital currency.
The new unit includes the transfer of some of the company's core technology teams, and is guided by an advisory board that includes experts in technology, cryptocurrency and regulation.
PayPal has in the past also teamed up with Wences Casares, a former board member and founder of the Bitcoin company Xapo, which is a legend in the crypto circle.
Quoted in Decrypt, he reliably explained various cryptocurrency terms and how PayPal's crypto unit is experimenting with smart contracts, and testing Ethereum and other blockchains as potential candidates to help the company improve payments and other transactions.
Schulman said PayPal's crypto efforts, which currently only offer Bitcoin and a few other cryptocurrencies, will soon expand and not just buy, sell and hold.
Interestingly, Schulman hasn't envisioned PayPal joining forces with companies like Square, Tesla, and other public companies that have recently added Bitcoin to their corporate coffers.
"Right now it's not our priority, we don't always like the ups and downs of the assets we invest in," said Schulman.
Schulman added that PayPal wants to keep its spare money free for potential acquisitions, including in the crypto space. In recent months, media rumors have indicated that the company is exploring to buy crypto storage companies BitGo and Curv.
Schulman's comments about cryptocurrency come at a time when PayPal and a growing list of other fintech companies including Square, Coinbase, Apple, and Stripe compete to redefine digital wallets as more than just tools for occasional payments.
In a recent phone call, Schulman called PayPal's ambitions and ideas a "super app".
Schulman explains that PayPal envisions a "super app" that offers a set of features that would require a different set of applications. This includes tools for payments, shopping, financial services, and "even new forms of digital identification."
The presence of these "super apps" also shows that US consumers are ready to adopt trends that are currently popular in Asia. In China, for example, the Super WeChat app is not only a payment wallet but also a social network and trading platform.
However, in North America, most consumers still prefer to swipe plastic cards or use cash to shop.
So, it's hard to persuade people to have a WeChat-like experience.
Nonetheless, this is a potential and transformations continue to emerge. For example, Venmo, as well as trading apps like Robinhood and Public, already offer a strong social media component.
Meanwhile, PayPal and Square have emerged as major payment portals for millions of merchants, and in time could serve as footholds for these companies to expand their marketing reach to consumers.
